Maturity profile

Financing risk refers to the risk that the financing of the Group’s capital requirements and the refinancing of existing loans could become more difficult or more costly. This risk can be decreased by ensuring that maturities are evenly distributed over time, and that total short-term borrowings do not exceed available liquidity. Disregarding seasonal variations, net debt shall be long-term, according to the Financial Policy. The Group’s goals for long-term borrowings include an average time to maturity of at least two years, and an even distribution of maturities. A maximum of SEK 3,000m in borrowings, originally long-term, is normally allowed to mature in the next 12-month period. When Husqvarna Group assesses its refinancing risk, the maturity profile is adjusted for available unutilized committed credit facilities.

In addition, seasonality in the cash flow is an important factor in the assessment of the financing risk. Consequently, Husqvarna Group always takes into account the fact that financial planning must include future seasonal fluctuations.

The average adjusted time to maturity for the Group’s financing was 3.8 years (3.9) at the end of 2016.

Future undiscounted cashflows of loans and other financial liabilities as of December 31, 2016 1)
SEKm 2017 2018 2019 2020 2021 >2021 Totalt
Financial leases -40 -38 -38 -37 -37 -179 -369
Bonds, bank loans and other loans -1,574 -2,501 -948 -92 -1,257 -91 -6,463
Derivative liabilities, interest rate 2) -18 -21 -7 2 3 - -41
Derivative liabilities, foreign exchange 2) -888 - - - - - -888
Trade payables -3,752 - - - - - -3,752
Total financial liabilities -6,272 -2,560 -993 -127 -1,291 -270 -11,513
1) Please note that the table includes the forecast future nominal interest payment and, thus, does not correspond to the net book value in the balance sheet.
2) For more detailed information on derivative contracts, see table under "Credit risk in financial activities" in Note 19 in the Annual Report.

Annual Report 2016